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General Atlantic, Värde may buy into PNB Housing; Energizer, Duracell eye Eveready
Photo Credit: Shah Junaid/VCCircle

Private equity firm General Atlantic and US-based investment firm Värde Partners are likely to buy a 22% stake in mortgage lender PNB Housing Finance Ltd from state-run Punjab National Bank for around Rs 3,500 crore, The Economic Times reported.

Citing three people aware of the development, the report said General Atlantic may pick up a 12% stake in PNB Housing while Värde Partners is likely to buy 10%. Both the firms have submitted binding bids, the report said.

General Atlantic is an existing investor in the housing finance firm with a 9.91% stake as on December.

Private equity firms ChrysCapital, Carlyle Group and a consortium of Blackstone and Singapore sovereign wealth fund GIC have not submitted bids, according to the report.

Punjab National Bank holds a 32.79% stake in the mortgage lender while Carlyle owns 32.36%. The market capitalisation of Mumbai-listed PNB Housing was around Rs 15,924 crore on Monday.

In July last year, the bank and Carlyle had initiated a joint process to sell a minimum 51% stake in PNB Housing. In November, Carlyle withdrew from the sale process. But the bank decided to independently pursue with the sale of its stake in part or full.

PNB Housing Finance’s assets under management stood at Rs 79,737 crore at the end of December. It has loan assets of around Rs 70,717 crore.

In another report, The Economic Times said that US-based battery maker Energizer Holdings and billionaire Warren Buffett's Berkshire Hathaway-owned Duracell are looking to pick up a controlling stake in Eveready Industries India Ltd. 

Citing three people aware of the development, the report said private equity firms such as Blackstone, KKR and Kedaara Capital are also likely to submit bids for Eveready.

Eveready is the flagship company of the BM Khaitan-led Williamson Magor Group. It is planning to sell a stake in Eveready as part of a group-level restructuring to pare debt.

The non-binding bids are likely to be placed this week, according to the report.

The promoters held a 44.35% stake in Eveready as of December 2018. The stock closed at Rs 208.50 apiece on Monday. Its market capitalisation is around Rs 1,516 crore.

Kotak Mahindra Bank is advising the promoters on the stake sale, according to the report.

Eveready makes dry-cell batteries. It also sells lighting products, rechargeable lanterns, packet tea and small home appliances.

Eveready was acquired by Williamson Magor in 1993 from US-based Union Carbide Corporation. Williamson Magor Group companies include McLeod Russel India, Kilburn Engineering and McNally Bharat Engineering Company.

Meanwhile, Canadian alternative asset manager Brookfield Asset Management has finalised terms with JM Financial Asset Reconstruction Company to acquire properties of debt-laden hotel chain Hotel Leelaventure Ltd for around Rs 4,500 crore, The Economic Times reported.

Citing two people aware of the development, the report said Brookfield is looking to pick up the bulk of debt held by JM Financial ARC in the hotel chain.

Hotel Leelaventure's total debt was Rs 3,799 crore as on March 2018, according to its annual report. It owns five hotels in Mumbai, Bengaluru, Udaipur, New Delhi and Chennai.

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